Fraud & Asset Recovery
What we saw in 2023
In 2023, our prediction about the escalation of crypto disputes proved accurate.
There was a significant rise in the number of company insolvencies in 2023. The total number of insolvencies looked set to be the highest since the depths of the financial crisis in 2009. However, we have not yet seen a corresponding rise in insolvency related claims that we expected.
6,208 Total company insolvencies
735 Compulsory liquidations
4,965 CVLs
466 Administration
41 CVAs
All large industries saw increased insolvencies in the four quarters ending Q3 2023 compared to the period ending Q3 2022.
England and Wales, Q4 2021 to Q3 2023
2024 trends and insights
In 2023, the increase in interest rates prompted investors to shift away from riskier investments that they had previously pursued in search of higher returns during periods of lower rates. This trend may persist going forward. As the funds are attempted to be withdrawn, that is likely to expose problems with the more dubious schemes and investments. We anticipate, therefore, that allegations of fraud by disgruntled investors will follow as the investment tide goes out.
We anticipate a decrease in the volume of standalone crypto claims. The feverish optimism of the market was punctuated by the FTX collapse and increasing moves towards regulation mean that scope for ‘get rich quick’ scams ought also to fall.
That said, we expect the number of claims involving collapsing or collapsed crypto exchanges to increase this year as the market consolidates.
More generally, and doubling down on last year’s almost correct prediction, we expect to see an increase in insolvencies this year as the wider economic conditions continue to bite. As more companies go bust and professional IPs are appointed to survey what remains, the likelihood of frauds being exposed increases, as well as subsequent recovery actions against wrongdoers.
Company Insolvencies
Construction
18% of cases with industry captured
Wholesale & retail trade; repair of motor vehicles & motorcycles
16% of cases with industry captured
Accommodation & food service activities
14% of cases with industry captured
Administrative & support service activities
9% of cases with industry captured
Manufacturing
8% of cases with industry captured
Fraud and Asset Recovery
Our team of fraud and asset tracing lawyers has market-leading experience in complex high profile, high value and cross-border matters. We have advised clients in some of the biggest international fraud cases in the Commercial Court in recent years.
We are on hand to provide urgent assistance for all fraud and asset-recovery processes.